Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15. Luke Company presents...
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Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15. Luke Company presents the following data for the years 1 and 2. Year 1 Year 2 Units of AP15 produced and sold Selling price Direct materials (square metres) Direct materials costs per square metre Manufacturing capacity for AP15 (units) Total manufacturing conversion costs Manufacturing conversion costs (per unit of capacity) Selling and customer- service capacity (customers) Total selling and customer- service costs Cost per customer of selling and customer-service capacity 20,000 $200 60,000 21,000 $220 61,500 $20 $22 25,000 25,000 $1,000,000$1.100.000 $40 $4 60 58 $360.000 $362,500 $6,000 $6.250 Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Neither conversion costs or customer-service costs are affected by changes in actual volume. Luke Company has 46 customers in year 1 and 50 customers in year 2. The industry market size for high-end appliances increased 5% from year 1 to year 2. Which of the following is a measure of the internal business perspective? OA return on investment O B) market share in the high-end appliance market 00 timely delivery OD production cycle time Đ number of employees trained in quality management Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15. Luke Company presents the following data for the years 1 and 2. Year 1 Year 2 Units of AP15 produced and sold Selling price Direct materials (square metres) Direct materials costs per square metre Manufacturing capacity for AP15 (units) Total manufacturing conversion costs Manufacturing conversion costs (per unit of capacity) Selling and customer- service capacity (customers) Total selling and customer- service costs Cost per customer of selling and customer-service capacity 20,000 $200 60,000 21,000 $220 61,500 $20 $22 25,000 25,000 $1,000,000$1.100.000 $40 $4 60 58 $360.000 $362,500 $6,000 $6.250 Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Neither conversion costs or customer-service costs are affected by changes in actual volume. Luke Company has 46 customers in year 1 and 50 customers in year 2. The industry market size for high-end appliances increased 5% from year 1 to year 2. Which of the following is a measure of the internal business perspective? OA return on investment O B) market share in the high-end appliance market 00 timely delivery OD production cycle time Đ number of employees trained in quality management
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Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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